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On 6 April this year, a number of modifications were made by the DWP targeted at aiding adult females, carers and low earners in retirement, only it was not good news for every person.

One of the most important changes is the enhanced minimum age for getting a retirement income. From 6th April, the minimum pension age was raised to age fifty five, involving more than 4 million people who were born between 6 April 1955 and 5 April nineteen sixty who unfortunately have to wait for up to five yrs to draw their retirement pension.

The state pension age for women also began to rise from 6th April until it reaches sixty five in 2020. By 2026, it is set to increase to sixty six for every person, until it ultimately reaches sixty eight in two thousand and forty six.

Additional changes include a reduction in the National Insurance (NI) contributions needed to qualify for the full basic state pension, which raised from £95.25 a week to £97.65 a week from the 6th April. Men and adult females will in the future need to build up just thirty years of contributions, which the government forecasts will provide for an additional forty thousand women who reach pension age in the next tax yr to qualify for the full state pension.

The state second pension will also be impacted by the modifications & now payments within the upper earnings threshold have been reduced from twenty percent to 10 percent. At some point, this will be changed to a flat rate payment rather than an earnings-related pension, & will continue to be linked to inflation, not pay.
A new credits scheme supersedes the Home Responsibilities Protection (HRP) scheme, which is designed to assist parents and carers to qualify for the state pension. From the sixth April, qualifying yrs can immediately be made up through weekly credits. These can then be added on to any paid contributions made when at work, with no limit on the credits awarded, as long as the qualifying rules are met.

For those reaching state pension age later this shift takes effect, each complete year of HRP, up to a maximum of 22 years, will be converted into qualifying years for the basic state pension.

Consilium Asset Management provide retirement planningadvice to clients in the South Gloucestershire area